Pension Annuity
Life expectancy has increased, so income planning and support over the long term is becoming more important. Thinking about what could support someone and bring them peace of mind and security right throughout their retirement is crucial.
There are risks to your client too. They include:
- Your client could lose money - pension annuities don’t have a ‘cash-in’ value and the total income paid from your client’s annuity could be less than the amount they used to buy it. A guaranteed payment period and/or dependant's pension can be added to reduce this risk.
- Timing - the amount of pension income we’ll offer your client will be based on our annuity rates at the time. If they buy when rates are low, their income will reflect this.
- Inflation - price inflation can reduce the real value of your client’s income over time, which could mean that it doesn’t stretch as far in future years, an increasing income can reduce this risk.
- It's a once and for all decision. Once their annuity is in payment your client can't change any of their payment options, even if their circumstances change.
- Deteriorating health. The pension income we offer your client will be based on the information they provide when they apply. If their health subsequently deteriorates, we won’t be able to increase their income.